Allerton Company acquires all Deluxe Companys assets and liabilities for cash on January 1, 2011, and subsequently

Allerton Company acquires all Deluxe Company’s assets and liabilities for cash on January 1, 2011, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts:

Using the acquisition method, prepare Allerton’s entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts:
(1) $145,000.
(2)$110,000.

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Book Values 60,000 90,000 10,000 Fair Values 60,000 50,000 20,000 30,000 Building Land TrademarkA Goodwill Liabilities Common stock Retained earnings 15,000 (40,000) (100,000) (35,000) (40,000)